Category: Google|Aug 29, 2021 | Author: Admin

Google is Apple's most important dairy cow

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Apple gets almost five percent of its revenue from search engine fees from Google.

$ 130 billion from Google
Google will pay Apple a total of 15 billion dollars (130 billion kroner) in 2021 to be the standard Safari search engine on iPhone, iPad, and Mac, according to analysts at Bernstein Research. In 2020, the price is estimated to have been ten billion.

 

Keeps Microsoft away
According to analysts, the sum will continue to rise in the years to come. For 2022, the budget is between 18 and 20 billion dollars. The figures are based on Apple's own information to the Securities and Exchange Commission as well as studies of the so-called Traffic Acquisition Costs that Google pays to external suppliers.

 

Google is willing to take such expenses to "ensure that Microsoft does not outbid them," according to Bernstein Research.

 

The App Store and Google are the dairy cows
Apple's huge revenue from Google is classified in the service segment. The search engine tax, along with the commission of 30 percent of sales in the App Store, is Apple's most important source of revenue in this area.

 

However, it is not a given that Google will continue to earn as well on the Safari site. According to analysts, there are various risks, including the authorities' preoccupation with competition in the market. Furthermore, Google can renegotiate the agreement if they think the sum is out of proportion.

 

Four to five percent of Apple's net profit
According to Bernstein Research, the sum accounts for between four and five percent of Apple's net profit.

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